Update 8/7/08: The 12-month CD yield has been increased to 4.50% APY. Refer to this post fore more details.
Washington Mutual just recently increased the yield on some of its Online CDs. They now have an 8-month and a 12-month CD with a yield of 4.25% APY. The minimum deposit is $1,000.
The competition is heating up. Yesterday, Bank of America and Countrywide Bank came out with a 4.10% APY 7-month CD (see post). And Wachovia extended its high yield Featured CDs for another few weeks (see post). To see how competitive these rates are, refer to Bankrate's 6-month CD page. The top CD on the list only has a yield of 3.72% APY as of 7/19/08. The 9-month CD list isn't much better. The top yield is only 3.80%.
For details about opening and closing WaMu CDs and details about WaMu's checking and savings accounts, please refer to this July 5th post.
WaMu also has some competitive long-term CD rates, but these are only available as Traditional CDs. As of today, these include a 5% APY for terms from 48 to 120 months. I'm not sure why they don't also offer these as Online CDs. For more details about these Traditional CDs, please refer to this post.
Latest WaMu News
WaMu has been hit hard by the crisis in the mortgage and credit markets. It's scheduled to release its second-quarter financial report on Tuesday. As this Seattle Times article reports, WaMu raised $7.2 billion in new capital 3 months ago which was needed to help cover the cost of bad mortgage loans. Investors will be watching Tuesday's release closely to see if WaMu's condition has worsened.
As I recommend with any bank, make sure you stay under the FDIC limits. WaMu is FDIC insured under two banks (Washington Mutual Bank FSB and Washington Mutual Bank).
Thanks to the reader jagermeister who mentioned this new CD rates in the comments. If you find any good deals, please leave a comment in the finding the best deals post (the red link to this post is located on the top right).
Update: Added info on the 5% Traditional CDs.